First Defiance Financial (NASDAQ:FDEF) and Ottawa Savings Bancorp (NASDAQ:OTTW) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.
Volatility & Risk
First Defiance Financial has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Ottawa Savings Bancorp has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.
33.4% of First Defiance Financial shares are held by institutional investors. Comparatively, 22.4% of Ottawa Savings Bancorp shares are held by institutional investors. 3.1% of First Defiance Financial shares are held by company insiders. Comparatively, 7.7% of Ottawa Savings Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares First Defiance Financial and Ottawa Savings Bancorp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Defiance Financial||$148.18 million||3.62||$32.26 million||$1.75||15.02|
|Ottawa Savings Bancorp||$11.84 million||3.78||$810,000.00||N/A||N/A|
First Defiance Financial has higher revenue and earnings than Ottawa Savings Bancorp.
This is a summary of recent recommendations and price targets for First Defiance Financial and Ottawa Savings Bancorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Defiance Financial||0||2||0||0||2.00|
|Ottawa Savings Bancorp||0||0||0||0||N/A|
First Defiance Financial currently has a consensus target price of $32.50, suggesting a potential upside of 23.62%. Given First Defiance Financial’s higher probable upside, equities research analysts clearly believe First Defiance Financial is more favorable than Ottawa Savings Bancorp.
This table compares First Defiance Financial and Ottawa Savings Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Defiance Financial||27.15%||11.51%||1.45%|
|Ottawa Savings Bancorp||7.41%||3.40%||0.66%|
First Defiance Financial pays an annual dividend of $0.68 per share and has a dividend yield of 2.6%. Ottawa Savings Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. First Defiance Financial pays out 38.9% of its earnings in the form of a dividend. First Defiance Financial has raised its dividend for 5 consecutive years. First Defiance Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
First Defiance Financial beats Ottawa Savings Bancorp on 10 of the 14 factors compared between the two stocks.
About First Defiance Financial
First Defiance Financial Corp. operates as a unitary thrift holding company that provides community-based financial services in northwest Ohio, northeast Indiana, and southeastern Michigan. It offers checking accounts, money market accounts, savings accounts, term certificate accounts, and certificates of deposit, as well as Certificate of Deposit Account Registry Service; and consumer finance, 1-4 family residential real estate, commercial real estate, construction, consumer, commercial, and home equity and improvement loans. The company also offers trust and wealth management services, as well as online banking services. In addition, it sells various property and casualty, group health and life, and individual health and life insurance products. The company operates through 43 full service banking centers, as well as 1 loan production office. First Defiance Financial Corp. was incorporated in 1995 and is headquartered in Defiance, Ohio.
About Ottawa Savings Bancorp
Ottawa Bancorp, Inc. operates as the holding company for Ottawa Savings Bank, a chartered savings bank that provides various financial services to individual and corporate customers in Illinois. The company offers various deposit accounts, including checking, money market, regular savings, club savings, certificate, and various retirement accounts. It also provides one-to-four family residential, multi-family and non-residential real estate, commercial, and construction loans; and consumer loans comprising auto, share, and personal unsecured loans, as well as home equity lines of credit. The company was formerly known as Ottawa Savings Bancorp, Inc. and changed its name to Ottawa Bancorp, Inc. in October 2016. Ottawa Bancorp, Inc. was founded in 1871 and is headquartered in Ottawa, Illinois.
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